Sinosteel gets 50 pct of Midwest Corp – source

July 10, 2008

July 10th (Reuters) – Chinese state-owned trading firm Sinosteel has clinched its takeover of Australian iron ore prospector Midwest Corp (MIS.AX: Quote, Profile, Research) after receiving more than 50 percent acceptances, a source close to the transaction said on Thursday.

The source said Sinosteel would announce its hard-fought victory in the battle for Midwest on Friday, having seen off a rival suitor, Midwest’s neighbouring prospector Murchison Metals Ltd (MMX.AX: Quote, Profile, Research), with a cash offer of A$6.38 per Midwest share.

Sinosteel was advised exclusively by JP Morgan on the offer, which values Midwest at A$1.36 billion ($1.3 billion).